An Inside Look
Who understands securities lending?
Registered funds (by which I mean traditional mutual funds and exchange-traded funds) sometimes permit other institutions to borrow shares from their portfolios, in exchange for a fee. What, exactly, is this business? What are its benefits? What are its risks? If you know those answers, congratulations! You understand more about securities lending than your humble columnist did before he read "Securities Lending: An Examination of the Risks and Rewards," by Morningstar's Adam McCullough.
John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.